OKay, from the top...
Here is where I am going to get the downloads:
STEP 3: Install
Type "sh NVIDIA-Linux-x86_64-1.0-8762-pkg2.run" to install the driver. NVIDIA now provides a utility to assist you with configuration of your X config file. Please see Chapter 3 of the README or run 'man nvidia-xconfig' for details on usage. Instructions for those wishing to edit their X config file by hand can also be found in the README.
Please note: Where I bolded the "X config" in the above quote, there is a link to download the utility for the x config file. It is this:
Being that it's a tar.gz file, I'm pretty sure that there is some extraction that needs to take place there. (hence the question, "where do I extract the files to?")
I opted to try the utility, because I was unable, and altogether unsuccessful in attempting to edit the x config file manually. Running the driver installer without editing the x config file leads to X server errors.
Does this make my issue any clearer?